Reserve Bank could hike cash rate twice in 2026 as Australia’s inflation stays stubbornly high

The Reserve Bank of Australia is considering raising interest rates again, potentially twice by the end of 2026, due to persistent inflationary pressures. Annual inflation remained high at 3.8% in January, with electricity costs increasing by 19% and power bills rising nearly a third compared to the previous year. The increase in electricity costs was largely driven by the end of government subsidies. This news comes as the Reserve Bank continues to monitor inflation trends, aiming to balance economic growth with price stability. The decision will be influenced by future data on inflationary pressures and the overall state of the economy. The Reserve Bank's actions are expected to impact households and businesses across Australia.

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